Australian shares slip to one-week low as Middle East tensions weigh

Rio Tinto

12/08/2026 02:37

Aug 12 (Reuters) - Australian shares slipped to a one-week low on Wednesday, weighed down by commodity stocks and caution over rising tensions in the Middle East, a day after the central bank held its interest rates steady.
The S&P/ASX 200 index .AXJO was down 0.4% at 9,209.70 points, as of 0054 GMT, touching its lowest level since August 5. The benchmark index closed 0.2% higher in the previous session.
Investors remained cautious after the Reserve Bank of Australia left rates unchanged on Tuesday and signalled it could tighten policy further if inflation proves persistent.
Risk appetite was dampened by escalating tensions in the Middle East, with renewed attacks near key shipping routes fuelling concerns over global energy supplies and pressuring Australia's resource-heavy share market on Wednesday. 
Corporate earnings were also in focus, with top lender Commonwealth Bank of Australia CBA.AX reporting record annual cash earnings but flagging a sharp slowdown in mortgage demand since the government's tax changes in May.
Shares of CBA fell 2.2% to their lowest level since July 22.
Financials .AXFJ recovered from early losses to trade 0.2% higher, primarily helped by a nearly 5% jump in Suncorp SUN.AX after the insurer reported annual cash earnings above market view. 
Miners .AXMM fell 0.6%, with giants BHP Group BHP.AX and Rio Tinto RIO.AX both falling around 1%. 
Energy stocks .AXEJ joined the dip, down 0.3%, with Woodside Energy WDS.AX falling 0.8%. 
Separately, shares of Australian Securities Exchange ASX.AX fell 2.2% after the bourse operator said a shareholder planned to file an application against the company in the Federal Court of Australia.
Power producer AGL Energy AGL.AX forecast stronger-than-expected 2027 earnings, lifting its shares by over 4% to their highest levels since June 15. 
Health stocks .AXHJ dropped 0.7% and tech stocks .AXIJ slipped 0.3%. 
New Zealand's benchmark S&P/NZX 50 index .NZ50 edged 0.1% lower to 13,848 points.

             

 (Reporting by Aamir Sheik Khalid in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Aamir.SheikKhalid@thomsonreuters.com;))
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